The Seven Key Obstacles Advertisers Face When Shifting From Traditional TV to Connected TV
When an advertiser transitions from Traditional TV to Connected TV (CTV), there is much they must first learn about best practices, tailoring expectations and meeting key client KPIs and objectives.
Technical Limitations and Ad Delivery
Ensuring ads are displayed correctly across all streaming platforms can be challenging due to different ad formats and technical requirements. While Origin's creative optimization solutions are unique insofar as they require NO special code or SDK's to serve, the majority of our competitors are restricted by CTV devices that may not support interactive or dynamic ads, limiting creative possibilities.?These technical limitations can hinder the effectiveness of CTV campaigns and require advertisers to carefully consider the specifications of each platform and device they target.
Measurement and Attribution
Unlike traditional TV, CTV offers more precise measurement capabilities. However, accurately attributing conversions and measuring campaign effectiveness across multiple devices and platforms remains a challenge. Advertisers must develop new measurement frameworks to understand the true impact of their CTV advertising efforts, especially when viewers interact with multiple screens simultaneously.
Viewer Engagement and Ad Fatigue
While CTV creates a captive audience similar to traditional TV, viewers can quickly ignore ads that don't capture their interest. Advertisers have a limited window to engage viewers before they mute the ad, look at their phones, or leave the room. Additionally, the non-interactive nature of CTV ads on smart TVs means viewers can't click on ads to take immediate action, requiring new strategies for driving engagement and conversions (click here to request Origin's 2025 Shoppable CTV white paper).
Fragmentation and Targeting Complexity
The CTV landscape is highly fragmented, with viewers spread across numerous streaming platforms and devices. This fragmentation makes it challenging for advertisers to reach their desired audience efficiently, potentially leading to wasted ad spend and lower ROI. Advertisers must navigate multiple platforms and develop strategies to effectively target their audience across this fragmented ecosystem.
Cost and Creative Production
CTV advertising often requires higher CPMs (Cost Per Mille) compared to traditional digital ads, straining budgets, especially in competitive markets. Additionally, while CTV offers media buyers and brands the ability to personalize their creatives to different target audiences, creating multiple variations of video ads for different audience segments can be complex and costly - an area that Origin solves (click here).
Privacy Concerns and Data Management
As CTV platforms collect user data for targeted advertising, there's an increased risk of consumer backlash and potential privacy breaches (see recent article on cookies and privacy here). Advertisers must navigate the delicate balance between personalized advertising and respecting user privacy to maintain trust and avoid regulatory hurdles. This challenge is particularly acute as privacy regulations continue to evolve.
By addressing these challenges, advertisers can more effectively leverage the benefits of CTV, including improved targeting, real-time data on ad performance, and the ability to reach cord-cutters and younger audiences who are increasingly moving away from traditional TV.
If you find this topic interesting and would like to know more about how Origin can help you transition from traditional advertising to CTV advertising, you can schedule a consultation with one of Origin's CTV specialists by clicking here.